Investor Presentaiton

Armour Energy and controlled entities Financial report continued Notes to the consolidated financial statements continued NOTE 27. EQUITY - ISSUED CAPITAL CONTINUED ACCOUNTING POLICY FOR ISSUED CAPITAL Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the NOTE 28. EQUITY – RESERVES Financial assets at fair value through other comprehensive income reserve Share-based payments option reserve Performance shares reserve Tribeca Loan Option Reserve For personal use only 98 MOVEMENTS IN RESERVES Movements in each class of reserve during the current and previous financial year are set out below: Consolidated armourenergy.com.au Financial assets at Share- based rights reserve Performance Performance Convertible shares note fair value through OCI payments option reserve reserve reserve Equity conversion right - Total Tribeca Loan $ $ $ $ $ $ $ Balance at 1 July 2018 Consolidated Revaluation - gross 30 June 2020 $ 30 June 2019 Deferred tax (2,809,800) (2,126,990) 638,097 4,632,240 125,000 125,000 5,402,322 Share-based payments 42,136 $ (20,520) (5,339,941) 4,887,176 5,382 2,893,012 (4,298,693) 4,674,376 Value of conversion rights - convertible notes, net of issue costs Value of conversion rights - Tribeca loan, net of issue costs 2,893,012 Reserve transfer - expired share- based payments 2,445,629 3,268,695 Transfer of conversion rights on redemption of convertible notes (125,000) (125,000) (5,381,802) 7,474,762 (2,126,990) 638,097 42,136 (20,520) 2,893,012 2,893,012 (250,000) (5,381,802) FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME RESERVE The reserve is used to recognise increments and decrements in the fair value of financial assets at fair value through other comprehensive income. SHARE-BASED PAYMENTS RESERVE The reserve is used to recognise the value of equity benefits provided to employees and Directors as part of their remuneration, and other parties as part of their compensation for services. Balance at 30 June 2019 Revaluation - gross Deferred tax Share-based payments Balance at 30 June 2020 (4,298,693) (1,487,500) 446,252 4,674,376 212,800 5,382 2,893,012 - 3,268,695 (1,487,500) 446,252 218,182 (5,339,941) 4,887,176 5,382 2,893,012 2,445,629 NOTE 29. INTERESTS IN SUBSIDIARIES Name Ownership interest 30 June Principal place of business / Country of incorporation 2020 30 June 2019 % % Ripple Resources Pty Ltd Armour Energy (Victoria) Pty Ltd Armour Energy (Surat Basin) Pty Ltd Armour Energy (Queensland) Pty Ltd Northern Australia Australia 100.00% 100.00% Victoria Australia 100.00% 100.00% Queensland / Australia. 100.00% 100.00% Queensland Australia 100.00% 100.00% 99

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